Canada’s Prime Minister Mark Carney announced new steps to protect Canada’s steel and lumber industries from US tariffs. To boost domestic demand, Ottawa cut steel import quotas for non-free trade agreement (FTA) partners from 50% to 20% of 2024 levels, and imposed a 25% global tariff on steel derivative products, such as wind towers, fasteners, and wires.

The plan also increases financial aid for the softwood lumber sector, adding $500 million in loan guarantees and raising total available funding to $1.2 billion. In addition, the federal government will subsidize freight rates for shipping Canadian steel and lumber interprovincially by 50%, beginning in Spring 2026.

These measures are expected to secure workers and reshape the industries' future against trade pressure.